The reversal in the precious metals (gold and silver) yesterday indicates a top may be in for the sector. Today was probably a bull trap -- an oversold bounce. Of course, in some super bull markets yesterday's action could be a nonevent and the bull continues. But in light of the unstoppable bull market in equities, it is likely the top in precious metals is near. Sure, maybe precious metals moves with equities market to SPX 1500, but there is only so far that precious metals and equities can move higher together. As the stock market continues its bull market, precious metals will collapse or trade sideways. After all, gold and silver are investments based on fear and thin markets and not much else. I think next month's employment numbers are going to be surprisingly good. Investors are more positive these days and are re-entering the market, albeit slowly. Even with SPX at 1300, most people have not bought into the equities rally of the last two years. As surely as day and night, they will come back. I'm confident equities is where people ought to be invested.
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